Saraswat Bank Education Loan Rate of Interest
This scheme includes study in India, Abroad and even the vocational courses.
- The pursuers of higher studies get a loan amount of up to INR 50 Lacs.
- The loan scheme covers 90% of the costs.
- 0.25% discount is given to premier institutes like IIMs, IITs, etc.
The interest rates as per the RBI guidelines are:
- For IBA approved course: PLR-3.75=10.65%.
- For IBA non-approved courses: PLR-2.00=12.40%.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
Saraswat Bank Education Loan Eligibility
- Indian National. The applicant should be a citizen of India.
- Course. Graduate/ Post-graduate professional, technical or career-oriented courses viz. medicine, engineering, management, etc.
- 10+2. 10+2 pass with at least 50% marks
- University. Premier universities in India or Abroad
- Admission Basis. Entrance test/ Merit based admission.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | For IBA approved course: PLR-3.75=10.65%. For IBA non-approved courses: PLR-2.00=12.40%. | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | 50 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | 50 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | For India: Nil For Abroad: 0.5% or INR 10,000 (whichever is less) | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | Maximum 12 years inclusive of moratorium period. | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to 4 Lacs: No margin Above 4 Lacs: For India: 5% For Abroad: 15% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | No age criteria | no age limit | No age limit | No | |
| Loan Security | Up to Rs. 4.00 lacs: Without guarantors Above Rs. 4.00 lacs: Pledge of any other tangible security acceptable to the bank or equitable mortgage of Property. | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | N.A | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Not mandatory | Yes | yes | yes | |
| Travel expeneses | yes | yes | yes | yes | |
| Bank transfter allowance | No such clause mentioned | available | available | No such clause mentioned | |
| Top up loan availability | Unavailable | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIS Skill Loan Scheme Padho Pradesh | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | Bank covers 90% of cost of the fee and other expenses 0.50% concession to girl students 0.25% additional discount to institutes like IIMs, IITs, XLRI, or ISB Borrowers can invest into Saraswat Bank?s shares while availing the loan | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Saraswat Bank Education Loan ?
Saraswat Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for Saraswat Bank Education Loan.
Click on Apply Now
Fill out the form with necessary details
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Saraswat Bank Education Loan Details
For Abroad: INR 50 Lacs
For Vocational courses: INR 10 Lacs
Above 4 Lacs: For India: 5%
For Abroad: 15%
For Abroad: 0.5% or INR 10,000 (whichever is less)
Above Rs. 4.00 lacs: Pledge of any other tangible security acceptable to the bank or equitable mortgage of Property.
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Expenses covered under Saraswat Bank Student Loan Scheme
- Tuition fee
- Examination fee
- Library/Laboratory fee
- Hostel Fee
- Cost of Books, equipment, instrument or uniforms
- Miscellaneous expenses- study tours, project work, thesis, etc.
- A reasonable cost of computer or laptop (if required)
- Travel Expense
Courses Covered Under Saraswat Bank Student Loan Scheme
In India
All Graduation, Post- Graduation or Doctorate courses
Professional Courses including Medical, Law, etc.
Courses that are offered by reputed foreign universities in India
Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
Courses Covered Under Saraswat Bank Student Loan Scheme
In Abroad
All Graduation, Post- Graduation or Doctorate courses
Professional Courses including Medical, Law, Dental, Engineering, etc.
Job Oriented Professional and technical courses
Post-graduation courses such as MBA/ MCA
Courses that are offered by CIMA, London and CPA, USA
Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree
Education Loan Documents Required ?
Duly filled Application Form
Copies of Identity proof and residence proof including DL, Aadhar, PAN.
Self-attested passport size 4 photographs
Mark sheets of last qualified examination
Income proof and/or copy of income tax return file
Details of existing loans and scholarship details (if any)
Income Proof of parents/ guardians along with income tax statement of the last 2 years along with 6 months bank statement.
Interest Subsidy Schemes
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Skill Loan Scheme
The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.
Padho Pradesh
Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.
Frequently Asked Questions
What schemes does Saraswat Bank considers for its education loans?
+ -There are multiple schemes offered by Saraswat Bank apart from the basic education loan. These are:
- Padho Pardesh
- Interest Subsidy Scheme
In whose name is the loan granted?
+ -The loan is granted in the name of the student
Is the loan contract executed only in student's name?
+ -No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.
What is the age limit for availing loan in Saraswat Bank?
+ -There is no age restriction for the applicant applying for education loan from saraswat bank. He/ she should only meet the other stated eligibility criteria?s.
Are minors eligible to apply for Saraswat Education Loan?
+ -Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Should the student's margin be paid upfront in the starting?
+ -Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Where can I avail Saraswat Bank Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Can I view my loan statement online if I am an existing education loan borrower?
+ -Yes, by creating a login on saraswat bank web portal, you can view all details related to education loan online.
Is there any minimum aggregate marks to meet the eligibility criteria to avail Saraswat Bank education loan?
+ -Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)
What is the discount/ rebate offered by Saraswat bank?
+ -- 0.50% concession is given to girl students
- 0.25% concession to students securing admission to top premier institutes viz. IIMs, IITs, XLRI, ISB.
- Eligibility criteria and margin on education loan is relaxed for SC/ST students
What all is included in tangible collateral security?
+ -Mostly Saraswat bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Saraswat Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job
What is tenure of an education loan?
+ -Tenure of education loan provided by Saraswat Bank is maximum 12 years
What does MCLR stands for?
+ -MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What all expenses are covered under this course?
+ -Expenses covered by Saraswat Bank education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
Will my travel expense will be covered if I take loan from Saraswat Bank?
+ -Yes, travel expenses are covered under this loan
I have taken admission through management quota. Am I eligible?
+ -This depends totally on bank's discretion as whether a student meets other eligibility criteria or not.
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -Saraswat Bank provides additional 0.25% concession to students who secure admission to premier institutes such as IITs, IIMs, XLRI, or ISB.
What is the processing fee or prepayment charges?
+ -The education loan offered by Saraswat Bank does not carry any prepayment charges or processing charges for studies in India. For studies abroad, 0.5% of loan amount is charged as processing fee on loan amount.
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under Saraswat Bank education Loan (both for India and Abroad)?
+ -Yes diploma or certificate courses are eligible under Saraswat Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from Saraswat bank.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
How many guarantors do I need to borrow loan from Saraswat Bank?
+ -You need at least 2 guarantors to avail loan from Saraswat bank.
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -Maximum term for repayment is 12 years
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
- EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
- Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
- Or simply you can use the EMI calculator provision available on Saraswat Bank’s official website.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student's reason. You can contact your nearest branch for more details.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
What is interest rate of education loan?
+ -The interest rate is different for different category. Refer the table below:
| Category | Loan Amount | Floating |
|---|---|---|
| For IBA approved courses | Upto INR 50 Lacs | PLR- 3.75= 10.50% Present PLR – 14.25% p.a. |
| For IBA non- approved courses | Upto INR 50 Lacs | PLR- 2.00= 12.25% p.a. |
What is interest subsidy on education loan?
+ -Saraswat Bank offers
- CSIS for students belonging to economically weaker section of the society to promote education amongst them.
- Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
What documents do I need to submit to avail interest subsidy scheme?
+ -The documents that need to be submitted are:
- Income certificate issued by authorised authorities
- Bonafide student certificate
- Letter of undertaking or declaration signed by borrower/ co-borrower
If I am availing loan for overseas studies, can I also avail interest subsidy scheme?
+ -No, the interest subsidy scheme is available only for studies applying for studies in India.
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Saraswat Bank to calculate your tax benefit through their tax benefit calculator.
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Can I repay my loan in foreign currency even if my bank is in India?
+ -Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.
Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Are there any additional benefits on availing loan from Saraswat Bank?
+ -Borrowers can invest in Saraswat Bank shares when they avail for loan.
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Are NRIs eligible for the education loan?
+ -NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Is Visa a necessary document for studying abroad?
+ -Visa is needed as a document proof but it is not a sole requirement.
What all procedures do one have to go through while applying for abroad?
+ -A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
If a student have any query, where or whom to contact?
+ -student can reach out to the nearest branch in case of any query.
Customer Care Number: 1800 22 9999
Customer Care Id: corporatecenter@saraswatbank.com
Local rates apply on every call
Calls are answered only during business hours for corporate bank customers.
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